Expensive ECB Rescue of Italian Banks Imminent

04.01.2017 • Central Banks

Julien Backhaus – Wealth Protection Today (Germany) –

Hopefully you have arrived well in the new year. The past year ended with some sad attacks, as we all know. It should not be better in the coming year either. Nevertheless, we must also look after the economy and finance. For before our eyes another drama is taking place.


The head of the Ifo Institute in Munich, Clemens Fuest, has now alarmed. It is again about Italy and what I have already announced to you at this point a few times. The rescue of the banks is on the horizon and could put our wealth and wealth at risk.


Expensive rescue is imminent

The rescue of the banks for Italy could be carried out via the European ESM rescue umbrella. If the European Central Bank, the ECB, were to agree to this rescue program, this would be a smooth breach of confidence within the Eurozone. The risks in Italy are not manageable.

The ECB would buy government bonds from Italy, but it would not even know how much bonds it would need to buy. Rather, she said she would buy “unlimited”. The European Central Bank ECB is, however, an institution which is supported by the national central banks, including by our Bundesbank.

First of all, the central banks like our Bundesbank pay for the purchase of government bonds. Once again: unlimited. Behind the Bundesbank, however, only the tax court stands. They pay with their taxes if the ECB purchases unlimited Italian government bonds.


Democratic agreement is missing

The Bundestag would still have to agree to this rescue program. Clemens Fuest argues that “the Bundestag (under these conditions) should not really agree with the ESM program”. He is right, but he will, as we all know from the past.

There is not much to be done against this agreement. Constitutional laws have so far been in vain. Our policy-makers in Berlin will thus lose our money all the time. The problem, however, goes even further.

Due to the unlimited acquisition of Italian government bonds, interest rates remain low. The ECB, which issues the money of third parties, is not interested in taking a high interest rate on Italy. It will keep interest rates low. This also leaves the interest rate low throughout the euro zone.

This is a second expropriation for you as a savior. If you have formed assets in any way, then this is currently not paying as well as it could. Also as a customer of life insurance you can earn very little money for your contributions. Many institutions have recently reduced their share of surplus for the new year.


Banking interests dominate in Europe

In front of all our eyes, politics is at the very least theft of the economy. The tax court is plundered to save Italian banks. At the same time, the claims of savers are undermined by higher interest rates, also to save Italian banks.

How would the alternative be? At the very least, the creditors and owners of the Italian banks could be liable. This would be market economy, in which the risks are always part of the business. However, the policy and the ECB seem to fear that the entire banking industry will be affected.

Or there is a completely different explanation: Numerous EU politicians as well as members of the central banks previously held senior positions in big banks. The networking still seems to work well. Sufferers. Therefore, you can not hope in the new year that we all as a customer of banks or as a taxpayer nothing happens.


Rather, the rescue measures in Italy seem to indicate the beginning of another expropriation wave. Savers and taxpayers must pay attention in 2017. Save your assets. Property values ​​such as real estate and shares are likely to help.

-Read more at www.pronomio.de (German)-

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